The Dynamics of Interventionism

Abstract

The term “dynamics of interventionism” refers to a social process, i.e., a sequence of adjustments to change over time, among a great many individuals, who largely share a common set of rules of interaction.¹ It is constituted by the unintended consequences at the interface between the governmental and market processes, when the scope of government is either expanding or contracting in relation to the market. Interventionism is the doctrine or system based on the limited use of political means (i.e., legitimized violent aggression (Oppenheimer, 1975[1914])) to address problems identified with laissez-faire capitalism. Thus, an intervention refers to the use of, or the threat of using, political means to influence non-violent actions and exchanges. Supporters of interventionism do not completely reject the institutions of capitalism, such as private property and the price system, but do favor using piecemeal interventions that extend beyond so-called minimal-state capitalism² in order to combat suspected failures or abuses they associate with the unhampered market. Examples of this would include, but are not limited to, market power, externality, asymmetric information, income inequality, racial and sexual discrimination, and the business cycle.

Citation

Ikeda, S. (2004), "The Dynamics of Interventionism", Kurrild-Klitgaard, P. (Ed.) The Dynamics of Intervention: Regulation and Redistribution in the Mixed Economy (Advances in Austrian Economics, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 21-57. https://doi.org/10.1016/S1529-2134(05)08002-6